Dragon Mountain Gold Ltd Announce Good Results From Drilling at Lixian Gold Project in China

Perth, Nov 9, 2007 AEST (ABN Newswire) - Dragon Mountain Gold Limited (ASX: DMG) announce the results from three diamond core drillholes at the Zhao Gou and Ma Gou deposits within the Lixian Project continue the good results obtained in drilling reported on 18 September 2007 and previous exploration.

Drilling confirms that the gold mineralised zones extend to depth below Zhao Gou and Ma Gou with consistency in grades, widths and mineralisation style.

Best results include:

---------------------------------------------------------Ma Gou 23.9m at 4.97g/t Au including 8.15m at 8.99 g/t AuZhao Gou 75.0m at 2.33g/t Au including 4.0m at 2.93g/t Au                                      14.0m at 4.77g/t Au                                      9.65m at 2.75g/t Au                                       8.0m at 3.02g/t Au      58.25m at 2.24g/t Au including 6.12m at 4.23 g/t Au                                      2.75m at 5.81g/t Au                                       5.0m at 5.94g/t Au---------------------------------------------------------Numerous wide intercepts grading between 1.05 g/t Au and 2.30 g/t Au were also encountered nearer surface. Up to 229.8m averaging 1.56 g/t Au, incorporating some of the highlights above, was obtained at Zhao Gou.Adit PD6A intersected the PD6 exploration underground workings at 1850mRL

Dragon Mountain Gold, continued to receive positive results from its confirmation drilling program at the Lixian Project in central west China. This second batch of drilling assays received from the Li Ba license area again confirms previous results and demonstrates the continuity and scale of gold mineralisation. We remain very encouraged by these additional results in terms of the planned conversion of existing mineralisation to a JORC compliant resource status.

The drilling program is currently focussed on confirming and extending the outcropping mineralisation at the Zhao Gou and Ma Gou (also known as No. 6) gold deposits. These deposits are part of the widespread Chinese resources outlined at the Lixian Project by the Gansu Non Ferrous Metallurgical Bureau and which are described in detail in the Company's Prospectus. The gold mineralisation is fine grained and found associated with pyrite and lesser arsenopyrite in a major shear system within sandstones and siltstones of the Qinling Fold Belt.

Underground development

The PD6A adit driven by DMG has successfully intersected the drives previously established by the Bureau during their exploration program. These abandoned drives were used solely for exploration access and not mining.

The adit encountered a waste stockpile in the old drive at the 1850mRL level. We are currently developing to secure the work area before refurbishing the old workings to undertake remapping, sampling and bulk sampling for metallurgical testwork. DMG also plans to commence underground drilling from these workings.

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